ESCO Market Study. Presented at the Roundtable Workshop Financial mechanisms to transform the ESCO market in Thailand: Discussion of the NAMA proposal

Transcription

1 ESCO Market Study Presented at the Roundtable Workshop Financial mechanisms to transform the ESCO market in Thailand: Discussion of the NAMA proposal Verena Streitferdt Consultant/Project Analyst Christopher Seeley Consultant, Climate Change Solutions Co., Ltd. Thursday 25 th June 2015

2 Outline Aim of the study Resources Thai ESCO Market Barrier Analysis o Barrier 1: Quality of the ESCO Market o Barrier 2: Lack of trust among stakeholders o Barrier 3: Lack of upfront capital Customer growth potential Implications for the NAMA proposal

3 increased investments in energy conservation, energy and cost savings, increased productivity, and GHG mitigation Increase in ESCO investments due to: Improved conditions for ESCOs to attract finance Improved capability for EPC Increased trust among end-users, banks, and ESCOs Thriving ESCO market due to: Improved access to capital for EE investments More and better EE investment proposals Input from the ESCO Market Study

4 Aim of the Study Thai ESCO Market Barriers Thai Customer Potential Thai ESCO Market Potential

5 Resources used ADB, Research on ESCOs in Southeast Asia Clinton Foundation, BMA research on commercial buildings for World Bank CTF DEDE, ESCO Market Survey. ECN, Survey ESCOs and ESCO Customers April 2015 (ECN) FTI, ESCO Market Report ReExCapital, Energy Efficiency Potential in Southeast Asia

6 Thai ESCO Market Definition (FTI): An ESCO is a company which provides energy efficiency and/or renewable energy-related services including project consulting, project development and management, technical design, energy audits, equipment installation, and project implementation and financing for energy savings and/or renewable energy project. Services offered by an ESCO are guaranteed by energy performance contracts in which methods for the measurement and verification of savings are defined.

7 Thai ESCO Market Current investment: Mio US$ a year Source: FTI 2013 Customers: Industry: 199 projects; 61 Mio US$ vs.; Commercial sector: 138 projects; 6.1. Mio US$

8 Thai ESCO Market Public support Host agency: DEDE Facilitators: Institute of Industrial Energy; Thai ESCO association; BOI International support: GIZ-TGPEEDP Afd -K-Bank Measures: ESCO fund Tax incentives Background studies Training Network development

9 Barrier 1:Quality of the ESCO Market Variable definition Small number of Thai and international ESCOs ESCO market dominated by fee-for-service rather than EPC Small market share

10 Barrier 2: Lack of trust Research: Technology provider or ESCO company ESCO fund complaints of mistrust Survey results: 50% mistrust of customers ESCO instruments misused

11 Barrier 3: Access to capital Energy services and guarantee contracts dominate Limited ESCO finance ESCO Fund: ESCOs not primary beneficiaries So far only EE leasing Limited uptake

12 Customer Growth Potential: Industry Composition : 80-90% SMEs Figure: Top 5 industries by investment potential (ReExCapital Asia 2011) EE Investment potential 2010: 417 Mio US$ (ReExCapitAsia20011)

13 Customer Growth Potential: Commercial buildings Figure : Hotels: Investment and Saving Potential (million US$) (ReExCapitalAsia, 2010) Investment Potential: 706 Mio US$

14 Customer Growth Potential: Public and Residential Sector Public buildings 5% of Electricity consumption High: hospital, universities low: schools Legislation needs to change Residential Low energy intensity Disbursed customers Split incentives Decentralised systems Potential in service apartments

15 Implications for the NAMA proposal Quality of the ESCOs Quality assurance system Contract Standardisation Trainings Trust is created Facilitation Approach o ESCO - customer o ESCO financial institutions Access to Finance Guarantee mechanism Grants for project development (ESCOs) Technical facility for Banks

16 Implications for the NAMA: Market transformation Doubling the ESCO market investments from US$ 150 to 300 million by 2020 (over 5 y.) From 300 to 2000 projects From 50 to 200 ESCOs. Project size between US$ Energy Savings and Greenhouse gas reduction Energy savings from 2020 onwards: o GWh/year o Mio US$/year CO 2 reduction: Mton CO 2 eq. annually from 2020 onwards

17 Question and Answers Thank you!